Bridging Loan for UK Haulage Company

Bridging Loan for UK Haulage Company

At Pledge has come to the aid of a customer who runs a well-established haulage company, with a short term bridging loan.

The company supplies haulage services to major companies across the UK, but was experiencing short-term cash flow issues due to a massive expansion in the company, and the age-old problem of suppliers paying sporadically.

The company, which was also run by members of the same family, always renews its fleet of lorries at regular intervals and required short term funding to facilitate the most recent set of new vehicle leases.

Fortunately a member of the family lived in and owned a residential property with no borrowings against it, which was no longer, suited to his needs. His plan to sell the property was perfect timing for the company, as it would allow them to seek a bridging loan, using the property as the security.

Ian Wilson head of bridging loans at AtPledge, met with the main borrower and the family member who owned and resided at the security property. Being a qualified surveyor Ian was easily able to assess the property, its’ value and the likely time it would take to sell. The property was valued on the day at £800,000. The client required £480,000 which was well within the AtPledge loan to value criteria.

AtPledge then agreed to assist and advanced the funds secured against the residential property, which would provide the exit when sold.

“Each and every one of our bridging loans is unique, and we are always prepared to think outside the box to help,” said Ian.

“We find it very important to meet with our customers to better understand the story behind their loan application and ensure that the bridging loan will meet theirs and the bank’s requirements. This was very much a case in point.”